27.—(1) During the financial year beginning on 1st April 2004 and every subsequent financial year, a local authority—
(a)shall charge to a revenue account a minimum amount (“minimum revenue provision”) for that financial year; and
(b)may charge to a revenue account any amount in addition to the minimum revenue provision,
in respect of the financing of capital expenditure incurred by the local authority in that year or in any financial year prior to that year.
(2) During the financial year beginning on 1st April 2004 and every subsequent financial year, a parish council or charter trustees may charge to a revenue account any amount in respect of the financing of capital expenditure incurred by the parish council or the charter trustees, as the case may be, in that year.
Commencement Information
I1Reg. 27 in force at 1.1.2004 for specified purposes and 1.4.2004 in so far as not already in force, see reg. 1(1)
28.—[F2(1)] A local authority shall determine for the current financial year an amount of minimum revenue provision which it considers to be prudent.]
[F3(2) The amount determined under paragraph (1) must include an amount equal to any expected or actual credit loss which—
(a)relates to a loan given by the local authority to any person or body on or after 7th May 2024, and
(b)is recognised by the authority during the current financial year in accordance with proper practices.
(3) A local authority may reduce the amount specified in paragraph (2) by deducting—
(a)any amount of minimum revenue provision the local authority has already charged to a revenue account in respect of the financing of the loan, and
(b)any amount of receipts, capital or otherwise, used to repay the principal of any amount borrowed to finance that loan.]
Textual Amendments
F1Reg. 28 substituted (31.3.2008) by The Local Authorities (Capital Finance and Accounting) (England) (Amendment) Regulations 2008 (S.I. 2008/414), regs. 1(1), 4(1)
F2Reg. 28 renumbered as reg. 28(1) (7.5.2024) by The Local Authorities (Capital Finance and Accounting) (England) (Amendment) Regulations 2024 (S.I. 2024/478), regs. 1(3), 2(4)(a)
29.—(1) Where in any financial year beginning before 1st April 2007, the amount of minimum revenue provision charged by a local authority to a revenue account is less than the amount required for that year (whether by reason of an error in the calculation of that amount or otherwise)—
(a)if the local authority has not made a charge to a revenue account on or after 1st April 2004 to correct the insufficient provision, the amount so charged shall be treated as correct and shall not be reconsidered in any circumstances; or
(b)if the local authority has made a charge to a revenue account on or after 1st April 2004 to correct the insufficient provision, the local authority may, in a financial year beginning before 1st April 2010, record in a revenue account a credit no greater in value than the amount of that charge.
(2) Any local authority which treats any amount as correct under paragraph (1)(a) shall include a note to that effect in its statement of accounts for a financial year ending no later than 31st March 2010.
(3) Any local authority which records a credit in a revenue account under paragraph (1)(b) shall include a note to that effect in its statement of accounts for the year in which the credit is recorded.
(4) In this regulation, “minimum revenue provision”—
(a)in relation to financial years beginning before 1st April 2004, has the same meaning as was given in relation to those years in section 63(1) of the Local Government and Housing Act 1989 prior to its repeal; and
(b)in relation to subsequent financial years, has the meaning given in regulation 27.]
Textual Amendments
F4Reg. 29 substituted (31.3.2008) by The Local Authorities (Capital Finance and Accounting) (England) (Amendment) Regulations 2008 (S.I. 2008/414), regs. 1(1), 4(2)
Commencement Information
I2Reg. 29 in force at 1.1.2004 for specified purposes and 1.4.2004 in so far as not already in force, see reg. 1(1)